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- OptiScan (OIL) shares have jumped after it announced it had successfully raised $9.8 million via a capital raise
- Orchid Capital Investments, which is an investment vehicle of Clermont Group, has agreed to purchase over $7.3 million of the shares on offer
- In total, the company will issue 118 million shares, worth 8.25 cents per share, to sophisticated and professional investors under the placement
- Additionally, one attaching option will be issued for every four new shares handed out and the options have an exercise price of 15 cents
- Meantime, OptiScan first signalled its intention to raise funds at the start of the week, when it entered back-to-back trading halts
- It then revealed the terms of the placement as well as its plans to use the funds for inventory expansion, clinical trials and market development
- The company advised shareholders it’s Executive Chairman Darren Lurie has been appointed CEO of the company
- Shares in the medical imaging stock have jumped up since the announcements, trading for over 16 cents each during today’s session
- OIL ended the day up 23.8 per cent at 13 cents per share
Medical imaging stock OptiScan (OIL) shares have jumped, after it announced it had successfully raised almost $10 million via a capital raise.
Orchid Capital Investments, which is an investment vehicle of Clermont Group, had agreed to subscribe for the majority of shares on offer – around $7.3 million worth.
In return, Clermont has the right to appoint one of its own to the board of OptiScan once the deal goes through.
The placement
In total, the company will issue 118 million shares to raise $9.81 million from sophisticated and professional investors, hitting its original goal.
The placement shares on offer are priced at 8.25 cents per share, a discount of 16 per cent on the 15 day volume weighted average price of OIL shares.
One attaching option will also be issued for every four new shares handed out under the placement.
The options have an exercise price of 15 cents each and will expire thirty months on from the date of issue.
OptiScan said the funds raised will be spent on inventory expansion, testing for regulatory purposes, product research and development, funding of potential clinical trials, market development, recruitment and working capital.
“We are delighted to have received the strong support of the Clermont Group and additional investors in the placement,” Executive Chairman Darren Lurie said.
“The placement providesvalidation of and the resources needed to support the company to deliver on its strategy of seekingregulatory approvals and embarking on the commercialisation of the InVivage device around the world,” he added.
The company first signalled its intention to raise funds at the start of the week, when it entered back-to-back trading halts.
The company then announced the details if the placement a day later, though the trading halt remained in effect.
The CEO
Meantime, OptiScan has also used today’s capital raise announcement to reveal that Executive Chairman Darren Lurie has been appointed CEO of the company, following a successful two-and-a-half-year run at the company.
Following the placement and CEO announcement, the back-to-back trading halts have lifted.
Since then shares in the company have soared, hitting a high of over 16 cents each during today’s session.
OIL shares ended the day still up a strong 23.8 per cent, worth 13 cents per share.
